FIRST SEMESTER 2007 FINANCIAL BRIEFING AUGUST 8, 2007

Transcription

1 FIRST SEMESTER 2007 FINANCIAL BRIEFING AUGUST 8,

2 FINANCIAL HIGHLIGHTS Net Income at P2.4 billion Net Income Breakdown 2.4bn 1.6bn Higher earnings contributions from subsidiaries and associates 57% Power Banking Transport Food Parent & Others 2

3 FINANCIAL HIGHLIGHTS Net Income at P2.4 billion Higher earnings contributions from subsidiaries and associates Net Income Breakdown bn 35% bn 57% Power Banking Transport Food Parent & Others Note: EPS is based on outstanding shares for the period. 3

4 FINANCIAL HIGHLIGHTS Earnings Performance of Subsidiaries and Associates (In million Pesos) Aboitiz Power Corp. City Savings Bank Union Bank* ATSC Pilmico 1 st Half st Half , , ,842.3 (0.9) % Change 16% 172% 70% n.a. 16% * At Cost Method 4

5 FINANCIAL HIGHLIGHTS Earnings Contributions from Subsidiaries and Associates (In million Pesos) Aboitiz Power Corp. City Savings Bank Union Bank ATSC Pilmico 1 st Half st Half , (1.1) % Change 16% 173% 59% n.a. 16% TOTAL 1, , % 5

6 FINANCIAL HIGHLIGHTS EBITDA (In million Pesos) 3,133 4,031 3,433 4,271 29% 24% EBITDA (Consolidated) EBITDA (Proforma) 6

7 CONSOLIDATED FINANCIAL STATEMENT HIGHLIGHTS CONSOLIDATED PROFIT & LOSS (In million Pesos) 1 st Half st Half 2007 % Change Revenues Equity Earnings EBITDA Net Income 13,847 14,971 8% 931 1,459 57% 3,133 4,031 29% 1,557 2,445 57% 7

8 CONSOLIDATED FINANCIAL STATEMENT HIGHLIGHTS CONSOLIDATED BALANCE SHEET (In million Pesos) Year End st Half 2007 % Change Cash and Cash Equivalents 8,010 5,491 (31%) Total Assets 40,844 54,355 33% Total Interest Bearing Debt 8,043 12,524 56% Total Debt 16,561 21,774 31% Net Debt 2, (66%) Stockholders Equity 24,283 32,581 34% Book Value Per Share Current Ratio Debt to Equity Net Debt to Equity Net Debt to EBITDA

9 GAIN ON DILUTION FROM SALE OF UBP SHARES As of June 30, 2007 (In million Pesos) AEV Ownership in UBP: Pre - Follow-on Offering (FOO) 42.14% Post - Follow-on Offering (FOO) 36.22% UBP Book Value Pre-FOO ost-foo Capital stock 5,512 6,414 Additional paid-in capital 1,575 5,827 Net Unrealized Loss on AFS Investments 97 (387) Retained earnings 12,030 13,948 UBP Book Value 19,214 25,803 AEV's Share in UBP Book Value 9,345 Less: AEV Carrying Value of Investment in UBP (net of goodwill) 8,663 AEV's Gain on Dilution in UBP 682 AEV's Gain on Dilution in UBP Accounted for as follows: AEV's 36.22% Share of UBP FOO-generated AP 1,540 Less: 5.9% Dilution in Share of UBP Pre-FOO APIC % Dilution in Share of UBP Accum Earnings % Dilution in Share of UBP Net Unreal Loss (23) AEV's Gain on Dilution in UBP 682 9

10 First Semester 2007 Operating Highlights 10

11 POWER GROUP Aboitiz Power s income up by 16% to P1,124 million Income Contribution of the Power Group 151% capacity increase led to a 121% yoy growth in net generated power 50% of 360MW Magat % 1, % 60% of 70MW CPPC 50% of 50MW EAUC Robust demand in serviced areas led to a 7% increase in electricity sales, while improved operating efficiencies enhanced profit performance % Generation Distribution Parent & Others amounts in million pesos 11

12 BANKING GROUP Banking group continued to provide good returns with net income contribution of 802 million, up 62% YoY Union Bank accounted for the lion s share at P772 million, recording a 59% growth yoy City Savings shored in P30 million, a 173% improvement versus last year s P11 million Income Contribution of the Banking Group UNIONBANK CITYSAVING % % +59% Return on Equity Return on Assets Rev-to-Exp Ratio 18.6% 45.6% 2.3% 5.8% 2.0X 2.6X NPL Ratio 3.6% 3.2% Union Bank City Savings amounts in million pesos Reserve Cover 67.2% 92.3% Capital Adequacy Ratio 23.4% 16.6% (as of end-june 2007) 12

13 BANKING GROUP UNIONBANK Union Bank continued to surpass industry profitability standards Consolidated net income up by 70% YoY to P1.8 billion (at cost method) Revenues increased by 88% YoY to P5 billion Net interest income grew by 87% Above average profitability ( ROE / ROA) ROE ROA 20.0% 3.4% 2.9% 16.0% 2.4% 12.0% 1.9% 8.0% 1.4% 0.9% 4.0% 0.4% 0.0% -0.1% UBP ROE Industry ROE UBP ROA Industry ROA Low cost producer (Cost to Income Ratio) 79% 78% 69% 66% 67% 64% 63% Non-interest income rose by 90% YoY derived from fees, 61% 60% 56% 51% 44% 43% 57% 50% commissions and trading gains UnionBank Industry 13

14 BANKING GROUP UNIONBANK ibank Acquisition Synergies to be created through >50% upsize in asset and operational scale UBP acquired ibank in May 2006 Complete integration on July 23, 2007 Synergies from enhanced economies of scale GEOGRAPHIC EXPANSION + 85 branches LOW-COST DEPOSITS + P20 bn CASA EXPANSION OF BUSINESS FRANCHISE Consumer Finance Middle Market + 200K customers + P29 bn loans COST SAVINGS PRODUCT SALES TO CUSTOMERS - P500 mn YTD headcount - P150 mn fees - 25K cards 14

15 BANKING GROUP UNIONBANK Assets ibank Acquisition Loans Deposits Amount in billions Amount in billions Amount in billions NPL ratio Net loans-to-deposit ratio 10% 8% 6% 4% 2% 9.5% 3.6% 29% 28% 27% 26% 28.0% 27.0% 0% 25% 15

16 TRANSPORT GROUP Transport Group s earnings contribution was at P284 million, a reversal from last year s net loss of P1.1 million Return to profitability is attributable to 77%-owned ATS, with net income contribution of P283 million Improved operating efficiencies and cost containment efforts led to 95% yoy growth in operating profit Conversion of unused passenger capacity to freight, which served increased demand for RORO Increased load factors in Income Contribution of Transport Group 284m ATS EBIT Performance 211m ,976% 283m +16,792% 108m 95% (50) (1m) ATS Accuria 16

17 TRANSPORT GROUP 59% decline in interest cost as debt levels were pared down by 73% Asset sale sold two ship vessels resulting to a gain of P367 million Net of one-off s, EBT was at P159m, vs. loss of P44m last year net income at P367 million JV with Maersk-subsidiary, MCC Transport, currently operating its first 400 TEU container ship, plying the Manila, Cebu and CDO ports on a regular weekly schedule. Launched Supply Chain Management Services on in January , B 73% Lower Interest Costs P93M (59%) 646 FY 06 'JUN 07 amounts in million pesos 17

18 FOOD GROUP Consistent profit contribution with income of P230 million, up by 16% yoy Revenues grew by 15% yoy, from P3.5 billion to P4.1 billion Price increases coupled with improved milling operations countered impact of higher input costs for both flour and feeds businesses Income Contribution of the Food Group % amounts in million pesos Income Over Ingredient Costs Ongoing expansion in feed and swine businesses 27% 27% 24% 15% PFC Jun-06 Fil-Am Foods Jun-07 18

19 1 ST HALF 2007 IN SUMMARY Continued strong showing of key subsidiaries and associates Stronger financial position across the business organization AEV placed its treasury shares in January 2007 APC s additional equity infusion in April 2007 Union Bank s follow-on offering in May 2007 ATS pared down debt level by 73% Improved business models Union Bank s corporate banking gets a boost from ibank s existing clientele base ATS reconfiguration of capacity to achieve higher load factors 19

20 MOVING FORWARD Power Banking IPO in July 2007 Participation in the upcoming bids for NPC power assets, focus on renewables Refinancing of SNAP s $ loan Shift to Performance Rate Base Earnings impact of full integrated activities of UBP and ibank Diversification of asset portfolio Leverage on its leading position in technology-driven products and services Transport Food Asset rationalization / sale of vessels Cold Chain solutions Earnings impact of deleveraging and lower depreciation Completion of the construction of a new feedmill at the Iligan Milling Complex Construction of additional grain silos increasing Pilmico s storage capacity Increase in swine capacity with the increase in breeder and grower number 20

21 FIRST SEMESTER 2007 FINANCIAL BRIEFING AUGUST 8,